Do I Need Homeowners Insurance When Building a Home?

When it you’re building a new home, you’ve got a lot to keep in mind. There’s the layout, materials, finishes, paint color, and insurance. Sure, you knew you’d need homeowners insurance once you’ve moved into your new home, but what about during the building process? Do you need homeowner’s insurance while building a home?

If You Already Own the Lot

If you already own the property on which you’ll be building and are coordinating subcontractors to build your home rather than working with a building company, you’ll definitely want to get liability insurance (either through a homeowners insurance policy or as a “course of construction” policy). Homeowners insurance only covers items and materials that are permanent parts of the home itself. You’ll likely need to add endorsements that cover theft and damage of any materials to protect everything on site throughout the build.

If the Builder Owns the Lot

If you’re working with a building company or main contractor, make sure they are bonded and insured. If you don’t yet own the lot, and you’re purchasing a custom home from a third party, you won’t even own the home until after you’ve closed. Still, you should understand the insurance that your builder carries to ensure everything is covered throughout the building process. Here are a few questions to ask:

Who is responsible for providing insurance throughout the building process?

Are you fully insured?

What does your insurance cover (liability, property damage, theft)?

How long after the home is built will the insurance policy be in effect?

Do you recommend any policies to supplement your coverage?

Consult your insurance agent for advice regarding any additional coverage you may need. Remember, it’s better to be safe than sorry, especially when it comes to the security of your dream home.

If you’re ready to move forward with your custom home, contact Castle Brook Builders. We’ve spent the last decade building dream homes for Omaha-area families. Our team is here to walk you through each step of the home building process. From picking out the perfect neighborhood to choosing the color of your front door, we’ve got you covered. Schedule a consultation today!